EGH International IPO (ECOGRP 0472): Full Analysis — NOT Shariah Compliant
⚠️ WARNING: This IPO is NOT Shariah Compliant
EGH International Berhad is not a Shariah-compliant stock. Muslim investors who practise Islamic investing are advised to avoid this IPO. This article is provided for informational purposes only.
EGH International Berhad (ECOGRP, Stock Code: 0472) is set to list on the ACE Market of Bursa Malaysia on 16 October 2026 at an IPO price of RM0.16 per share. The company is a turnkey interior fit-out contractor that has completed over 200 projects across Malaysia, Cambodia, India and Hong Kong over 15 years — including 57 hotels and resorts, 19 healthcare facilities, and 5 airport lounges.
With FY2026 revenue of RM187.1 million and net profit of RM10.9 million, EGH International aims to raise RM38.4 million through its public issue. However, investors should note that this stock is NOT Shariah compliant.
IPO Summary
| Detail | Information |
|---|---|
| Company Name | EGH International Berhad |
| Ticker / Stock Code | ECOGRP (0472) |
| Market | ACE Market, Bursa Malaysia |
| IPO Price | RM0.16 per share |
| Application Period | 24 Sep — 5 Oct 2026 (5:00pm) |
| Balloting | 7 October 2026 |
| Allotment | 14 October 2026 |
| Listing Date | 16 October 2026 |
| Total Shares Offered | 360 million (240M new + 120M offer for sale) |
| Enlarged Share Capital | 1,000,000,000 shares |
| Market Capitalisation (IPO) | RM160 million |
| PE Ratio (FY2026) | 14.68x |
| EPS (FY2026) | 1.09 sen |
| Principal Adviser | Berjaya Securities Sdn Bhd |
| Shariah Status | NOT Shariah Compliant |
Company Profile
EGH International Berhad is a turnkey interior fit-out contractor that transforms bare concrete shells into fully operational spaces — primarily hotels, resorts and luxury properties. The company's operating platform spans:
- Turnkey project execution — from design to handover
- Design coordination — working with architects and project owners
- Custom manufacturing — fabrication of furniture and interior finishes
- M&E integration — mechanical and electrical works
- FF&E procurement & supply — furniture, fixtures and equipment
Founder & Management
Dato' Weslie Lim is the founder and Group Managing Director. He began his career in audit and financial management before joining LCL Holdings in 2001, where he rose to Group General Manager and Executive Director of LCL Corporation. Jessie Lim serves as Group Chief Executive Officer.
Track Record (15 Years)
| Project Category | Completed |
|---|---|
| Hotels & Resorts | 57+ |
| Healthcare Facilities | 19 |
| Airport Lounges | 5 |
| Educational Institutions | 3 |
| Total Projects | 200+ |
| Countries | Malaysia, Cambodia, India, Hong Kong |
Financial Performance
FY2026 (Full Year)
| Metric | FY2026 | YoY Change |
|---|---|---|
| Revenue | RM187.1 million | +19.4% |
| Net Profit (PAT) | RM10.9 million | +51.1% |
| Net Profit Margin | 5.84% | — |
Q1 FY2027 (Latest Quarter)
| Metric | Q1 FY2027 |
|---|---|
| Revenue | RM58.67 million |
| Net Profit (PAT) | RM4.05 million |
| — Interior Fit-Out (94.4%) | RM55.41 million |
| — FF&E & Building Materials (5.6%) | RM3.26 million |
Annualising Q1 FY2027 profit yields an estimated full-year PAT of approximately RM16.2 million, or an annualised EPS of 1.62 sen — translating to a forward PE of approximately 9.9x, lower than the historical PE of 14.68x based on FY2026.
Valuation
| Valuation Metric | Value |
|---|---|
| IPO Price | RM0.16 |
| Enlarged Share Capital | 1,000,000,000 |
| Market Capitalisation | RM160 million |
| EPS (FY2026) | 1.09 sen |
| PE (FY2026) | 14.68x |
| Annualised EPS (Q1 FY2027) | 1.62 sen |
| Forward PE (annualised) | ~9.9x |
Use of Proceeds (RM38.4 Million)
| Purpose | Amount (RM million) | % |
|---|---|---|
| Repayment of Borrowings | 14.40 | 37.50% |
| General Working Capital | 13.00 | 33.85% |
| Listing Expenses | 6.00 | 15.63% |
| New HQ, Warehouse & Showroom (Puchong, Selangor) | 5.00 | 13.02% |
| Total | 38.40 | 100% |
Note: 37.5% of proceeds are allocated to repay existing debt, meaning only RM18 million (47%) is directed towards business growth and operations. Proceeds from the offer for sale (120 million shares x RM0.16 = RM19.2 million) go to selling shareholders, not the company.
Share Allocation
| Category | Shares (million) | % |
|---|---|---|
| Malaysian Public | 50 | 13.9% |
| Eligible Individuals | 30 | 8.3% |
| Total Retail | 80 | 22.2% |
| Institutional & Private Placement | 280 | 77.8% |
| Total Offering | 360 | 100% |
Only 22.2% (80 million shares) is allocated to retail investors — worth just RM12.8 million. High demand means the probability of receiving full allotment is low.
Investment Perspective
Strengths
- Proven track record — 200+ completed projects, 57 hotels/resorts across 4 countries over 15 years
- Strong financial momentum — Revenue +19.4%, PAT +51.1% YoY in FY2026; Q1 FY2027 shows continued growth
- Reasonable forward PE — ~9.9x based on annualised Q1 FY2027, below ACE Market construction sector average
- Turnkey model — one-stop approach creates value-add and reduces competition from smaller contractors
- Growing hospitality sector — ASEAN tourism and hospitality in post-pandemic recovery and expansion phase
Risks
- 37.5% of proceeds for debt repayment — more than a third used to pay down existing borrowings, not growth
- Project-based revenue — no recurring income; depends continuously on new project wins
- Thin margins — 5.84% net margin means cost increases in materials or labour can quickly erode profits
- Large offer for sale — RM19.2M (120M shares) goes to selling shareholders, not the company
- Small retail allocation — only 22.2% for retail, demand may not reflect actual investor interest
- NOT Shariah compliant — limits investor base, especially in Malaysia where the majority of retail investors are Muslim
⚠️ Important Reminder: Not Shariah Compliant
EGH International Berhad (ECOGRP 0472) is NOT listed as a Shariah-compliant stock by the Securities Commission Malaysia. Muslim investors who follow Islamic investing principles are advised to avoid this IPO. Refer to our Shariah vs conventional investing guide for more information.
Frequently Asked Questions
What is EGH International's IPO price?
The IPO price is RM0.16 per share. At this price, one lot (100 shares) costs RM16, and the company has a market capitalisation of RM160 million.
When is the listing date?
EGH International is scheduled to list on the ACE Market on 16 October 2026. The application period closes on 5 October 2026 at 5:00pm.
Is EGH International Shariah compliant?
NO. EGH International Berhad is not a Shariah-compliant stock. Muslim investors who practise Islamic investing are advised to avoid this IPO.
What is the PE ratio?
Based on FY2026 PAT of RM10.9 million and 1 billion enlarged shares, the historical PE is 14.68x. Based on annualised Q1 FY2027 (PAT ~RM16.2 million), the forward PE is approximately 9.9x.
How are IPO proceeds used?
Of the RM38.4 million from the public issue: 37.5% for debt repayment (RM14.4M), 33.9% working capital (RM13M), 15.6% listing expenses (RM6M), and 13% for a new HQ in Puchong (RM5M).
How many shares are available for retail investors?
Only 80 million shares (22.2% of the offering) are allocated for retail — 50 million for Malaysian public and 30 million for eligible individuals. The remaining 280 million are for institutional investors.
Conclusion
EGH International Berhad offers exposure to the niche turnkey interior fit-out sector, backed by a 200+ project track record over 15 years and positive financial momentum (revenue +19.4%, PAT +51.1% in FY2026). The forward PE of ~9.9x based on Q1 FY2027 trends appears reasonable for the construction sector.
However, investors should weigh several concerns — 37.5% of IPO proceeds go to debt repayment, margins are thin at 5.84%, and revenue is entirely project-dependent. Most importantly: this stock is NOT Shariah compliant, which directly limits the investor base in Malaysia.